BDR - average Grade for the next two quarters, page-8

Morning Guys

1.4g/t correlates with the announcement 2/1/15:




To me it indicates that it excludes the Duckhead 20k oz. But, as Sarge has stated you simply can not trust management.

We are now 7/8/15 and have not heard about the Duckhead approvals.

Given that the mining schedule is 5 months with the last three weeks or so digging out the ore we are now past or very close to the period where oz will be moved into Q1 FY16. There are two issues with this in my view:

(1) BDR will be progressively mining Duckhead into the wet season again

(2) If there is any more slippage, by only a couple / few weeks this gold 'windfall' will not be available for the 15th January when a US$5m debt payment becomes due. This in turn increases the likelihood of a capital raising if BDR can't hit the top end of their Duckhead exclusive guidance (i.e. 40k oz per Q).

As of this morning we are within a fly's fart of the all time BRL POG:



All else being equal BDR should be rewarding shareholders with similar sloping chart ... but alas no.




BDR has lost 44% of it's value in just over a month. This is far greater than some of it's peers.

The cause I believe is self evident:

A Board of independent directors comprised of a lawyer, geologist and accountant that cannot provide operational oversight, guidance and discipline and a company run by someone who is out of his depth:







BDR as a single mine operation with a low(er) grade and seasonal production profile, and what is likely to be a production level of c. 130k oz this FY is simply not structurally set up for a bear market in gold.

There are too many non operational costs impinging upon the company above the AISC level that elevates the AIC per oz.

We can see many gold mining companies consolidating and cutting their cost bases to survive in this bear market. Due to BDR's failings they are no longer (if the ever were) in a position to act as a predator in this process.

My view is that BDR need to now be open and receptive to being acquired (for a premium) and absorbed into another company's operations whilst cutting all non operational costs to the bone.

Cheers
John